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Why Fixed Deposits are a Smart Investment Amidst Rising Capital Gain Taxes Budget 2024
Posted on Friday, September 20th, 2024 | By IndusInd Bank
With the recent increase in effective capital gain taxes, investors are seeking stable and secure investment options. Fixed Deposits (FDs) have long been favoured for their guaranteed returns and low risk. In the current financial landscape, they have become even more attractive. Here’s why Fixed Deposits are a good investment choice now.
Benefits of Fixed Deposits
· Guaranteed Returns with Minimal Risk
One of the primary reasons to invest in FDs is the guaranteed returns. Unlike stocks or mutual funds, which are subject to market volatility, FDs offer a fixed interest rate for a specified tenure. This makes them a safe investment option, especially in times of economic uncertainty.
· Predictable Income Stream
Fixed Deposits provide a predictable income stream. This is particularly beneficial for retirees or those looking for steady income. With capital gains taxes increasing, the net returns from equity investments may decrease, making the stable returns from FDs more appealing.
· Tax Benefits
Certain types of Fixed Deposits, such as Tax-Saving FDs, offer tax deductions under Section 80C of the Income Tax Act. While the interest earned on FDs is taxable, the overall tax liability can still be lower compared to the higher taxes on capital gains from other investments.
· Flexibility and Accessibility
FDs offer various tenure options, allowing investors to choose a term that aligns with their financial goals. Additionally, most banks provide the facility to withdraw funds prematurely, although a penalty might apply. This flexibility can be beneficial compared to other investments with longer lock-in periods.
· Competitive Interest Rates
With banks offering competitive interest rates on FDs, the returns can be quite attractive. The interest rates on Fixed Deposits are often higher than those on savings accounts, making them a better option for earning more on idle funds.
IndusInd Bank Fixed Deposits: A Wise Choice
Among the many banks offering Fixed Deposits, IndusInd Bank stands out with its attractive FD schemes. IndusInd Bank offers competitive interest rates, flexible tenure options, and the assurance of a stable and secure investment.
- Open a fixed deposit account quickly from anywhere
- A 100% digital process means only your Aadhaar and PAN card details are required
- Save on taxes by booking a five-year tax-saving FD
- Complete video KYC and effortlessly book an FD with a flexible amount
- Decide how often you want to get interest payments (monthly, quarterly, every six months, yearly, etc.)
Conclusion
Considering the increase in effective capital gain taxes, Fixed Deposit emerges as a reliable and advantageous investment option. They offer guaranteed returns, tax benefits, and flexibility, making them suitable for a wide range of investors. IndusInd Bank Fixed Deposits provide competitive rates and convenience, ensuring your investment is both secure and profitable.
Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.
